Don't apply new law to ongoing projects in Ahmedabad: Realtors

AHMEDABAD: Even as realtors welcome Real Estate (Regulation and Development) Bill, 2015, they are expressing concerns over provisions regarding registration of ongoing projects and cancellation of registered projects by the regulator. The bill will be presented in Parliament during the ongoing winter session.

Among other things, the bill envisages creation of a regulator for the real estate sector, empowered to penalise and prosecute developers. Before launching any project, developers are required to register them with the regulator and must obtain all approvals before marketing such projects.The bill, which seeks to create a more consumer-friendly , transparent and accountable real estate sector, also empowers the regulatory authority to cancel projects registered with it.

“We are not against the new law, but it should not be retrospective in nature. Keep ongoing projects out of the purview of the new law, as the registration of such projects would delay their completion,“ said Getamber Anand, president (National) of Confederation of Real Estate Developer's Association (Credai) at the inauguration GUJCON, a 3-day convention and building material expo in Ahmedabad.

“Cancellation of registration in the middle of a project could be dangerous. The provision should not be misused to harass builders. Both issues of registration of ongoing projects and cancellation of the projects need to be looked into,“ added Irfan Razack, chairman, Credai-National.

“Under the new law, accountability of consumers, government and developers should be made equal. Also, the land cost should not be included in the amount to be deposited in escrow account,“ added Jaxay Shah, president elect, Credai National. Even projects of 500 sq mt will have to be registered. This will affect small developers. Earlier such registration was mandatory for projects of 1,000 sq mt or more.

“It will increase the number of applications 10 times resulting in delays in file clearance and increase in backlog.As a result, the industry will suffer,“ said Shekhar Patel, treasurer, Credai National.Gujarat chief minister Anandiben Patel, who inaugurated the expo, assured realtors that they would be consulted while formulating state real estate law. “We will study the clauses together and make changes accordingly . You have voiced a number of problems and many of them will be solved, but we cannot give you any deadline for that,“ added Patel, who also has revenue and urban development ministries under her portfolio.

Once the real estate regulatory law is enacted, all state governments will have to formulate similar laws. They will be able to make changes keeping local circumstances in mind, but within the given framework of the national law.

GIHED to be Credai's city chapter

The Gujarat Institute of Housing & Estate Developers (GIHED), an apex body of Gujarat's real estate developers, has now been made the Ahmedabad Chapter of Credai. “In order to create one national body of developers, many regional associations have been brought under the ambit of Credai. We already have Credai-Gujarat and GIHED will now be known as Credai's Ahmedabad Chapter,“ said Dipak Patel, president, GIHED.